Edmonton housing starts to shake doldrums in 2012

Fewer homes were built in Edmonton in 2011, but Canada Mortgage and Housing Corporation expects housing starts to jump dramatically next year.

Fewer homes were built in Edmonton in 2011, but Canada Mortgage and Housing Corporation expects housing starts to jump dramatically next year.  

Housing starts are expected to climb in Edmonton next year. (CBC)

Edmonton is on pace for 9,100 new units in 2011, nine-per-cent fewer than 2010.

However, housing starts are forecast to increase by 11 per cent in 2012, adding 10,100 units, which is expected to be the best performance in five years.

The forecast is based on rising net migration, continued employment and income growth, lower new home inventories, and a more balanced existing home market, said Richard Goatcher, CMHC’s Senior Market Analyst based in Edmonton.

Edmonton home prices stayed largely on par with 2010.

With market conditions largely favouring buyers, the average MLS residential resale price this year will decrease marginally to $328,000, down from the $328,803 annual average recorded in 2010, said CMHC.

Conditions should begin to firm up during the later months of 2011 so that prices begin to rise on a month-over-month basis going into the following year, it said.

In 2012, a more balanced market will provide some moderate upward momentum for home prices, with the annual average expected to reach $336,000, said CMHC.